JIM L DONALD.Starbucks lost customers after an increase in late July of 9 cents a cup caused some customers to go to competitors instead. Margins have also been hurt by higher dairy costs and the sales of less-profitable breakfast sandwiches and salads.Unbeknownst to us, we saw economic headwinds that quite frankly came up probably stronger than I thought,” Mr. Donald said.
“The consumer is being faced with rising costs in every sector of their lives, and so part of that is reflecting on us.”Fourth-quarter net income advanced to $158.5 million, or 21 cents a share, from $117.3 million, or 15 cents, a year earlier, the company, based in Seattle, said in a statement. The results matched analysts’ estimates. Revenue climbed 22 percent, to $2.44 billion.
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